Great West reports Q3 2026 results with double-digit base EPS growth

TSX:GWO

• Base EPS increased 11% year-over-year to $1.48, while Net EPS increased 2% to $1.27
• Base ROE of 19.4%, a record high and in line with 19%+ medium-term objective, and ROE of 16.9% 
• Maintained a strong capital position, with a LICAT ratio of 127%
• Repurchased $340 million of common shares in Q3 2026
• Closed acquisition of Milliman’s retirement and benefits administration business in the U.S. 

WINNIPEG, MB, Nov. 4, 2026 /CNW/ — Great-West Lifeco Inc. (Great West or the Company) today announced its Q3 2026 results.

“Great West continues to build on strong momentum across our global enterprise, delivering another excellent quarter for our shareholders,” said David Harney, President and CEO, Great West. “Our Retirement, Wealth, and Capital and Risk Solutions businesses continue to fuel double-digit EPS growth, and we achieved record base ROE in Q3. Disciplined capital deployment during the quarter, including completing the Milliman transaction and further share buybacks, clearly demonstrates the organization’s focus on driving future growth and creating long-term value.”

KEY FINANCIAL HIGHLIGHTS

Base earnings¹ of $1,323 million and $1.48 per common share² in the third quarter, up 8% from $1,225 million and 11% from $1.33 a year ago. The strong results were driven by continued momentum in our Retirement and Wealth lines of business, led by Empower, and robust Capital Solutions new business growth in Capital and Risk Solutions (CRS). Base earnings growth was partially tempered by unfavourable insurance experience in Canada.

Net earnings of $1,139 million in the third quarter ($1,158 million a year ago) and $1.27 per common share were driven by strong base earnings, modestly tempered by the impact of assumption changes and management actions, as well as business transformation initiatives.

HIGHLIGHTS

• Strong business performance:
  • Base EPS increased 11% year over year in the third quarter, to a record high, driven by sustained top-line momentum across our businesses, operating leverage in U.S. Retirement and Wealth, and significant share repurchases over the past year.
  • Great West delivered a base ROE of 19.4%, a new record, and in line with management’s 19%+ medium-term objective, largely due to base earnings growth, a more capital-efficient business mix, and share buybacks.
• Strategic focus on repositioning the portfolio toward higher-growth, capital-efficient businesses:
  • Total client assets⁴ reached $3.9 trillion, of which $1.3 trillion represents higher-margin assets under management or advisement⁴.
  • Retirement and Wealth now comprise more than 50% of Great West base earnings⁵.
  • Retirement and Wealth continued to generate strong asset growth, with average client assets increasing 16% year over year in each business.
• U.S. segment continued to deliver double-digit base earnings growth:
  • Base earnings increased 15% year over year in constant currency, driven by favourable markets, improving Wealth net flows, and continued operating leverage, supported by US$21 million (post-tax) of one-time administrative services fees.
  • Base ROE continued to improve, increasing to 22.9% from 22.2% in the previous quarter.
  • Empower’s Retirement business generated US$1.2 billion in net plan flows in Q3 2026, partially offsetting net participant outflows. Empower Wealth saw net inflows of US$2.5 billion, supported by improved rollover sales following the completion of various business transformation initiatives.
  • In Q3 2026, Empower’s platform generated record pre-tax base operating margins⁴ of 35.6% in Retirement, up 370 bps from a year ago, and 42.0% in Wealth, up 410 bps from a year ago.
• Sustained growth in Capital and Risk Solutions:
  • CRS run-rate insurance results⁴ up 19% year over year, driven by sustained demand for Capital Solutions.
  • Continued to deliver strong returns with base ROE of 42.6%.
• Continued balance sheet strength provides substantial flexibility:
  • Great West maintained a strong capital position, with a LICAT⁶ ratio at 127%.
  • Great West’s free cash flow exceeded 80% of base earnings, enabling $340 million of share repurchases in Q3 2026. 
  • Great West Holdco cash of $3.6 billion and leverage ratio⁴ of 29%. Net of a planned €500 million Eurobond repayment in Q4, Holdco cash was $2.8 billion and the leverage ratio was 27%.
  • Book value per share stood at $30.07, up 8% year over year.

SEGMENTED OPERATING RESULTS

For reporting purposes, Great West’s consolidated operating results are grouped into five reportable segments – United States, Canada, Europe, Capital and Risk Solutions and Corporate – reflecting the management and corporate structure of the Company. For more information, refer to the Company’s Q3 2026 Management’s Discussion and Analysis (MD&A).

 

UNITED STATES

• Q3 U.S. segment base earnings of US$364 million ($510 million) and net earnings of US$321 million ($451 million) – Base earnings increased by US$47 million, or 15%, compared to the same quarter last year, primarily reflecting higher fee income driven by stronger markets, positive net plan inflows in Retirement and net inflows in Wealth, as well as operating leverage. Base earnings also included one-time fees of US$21 million (post-tax), which were offset by elevated credit impacts in the quarter.

CANADA

• Q3 Canada segment base earnings of $347 million and net earnings of $322 million – Base earnings decreased by $24 million, or 6%, compared to the same quarter last year, primarily driven by moderated Group Benefits insurance experience, partially offset by strong Retirement results and improved Insurance & Risk Solutions insurance experience. 

EUROPE

• Q3 Europe segment base earnings of $273 million and net earnings of $216 million – Base earnings increased by $7 million, or 3%, from the same quarter last year, primarily due to higher retirement earnings driven by stronger markets, lower non-directly attributable expenses, and favourable currency movements, partially offset by moderated insurance experience and lower expected investment earnings. 

CAPITAL AND RISK SOLUTIONS

• Q3 Capital and Risk Solutions segment base earnings of $309 million and net earnings of $261 million – Base earnings increased by $44 million, or 17%, compared to the same quarter last year, primarily driven by strong Capital Solutions new business growth.

QUARTERLY DIVIDENDS

The Board of Directors (or Directors) approved a quarterly dividend of $0.67 per share on the common shares of Great West, payable December 31, 2026, to shareholders of record at the close of business December 3, 2026.

In addition, the Directors approved quarterly dividends on Great West’s preferred shares, as follows:

For purposes of the Income Tax Act (Canada), and any similar provincial legislation, the dividends referred to above are eligible dividends.

NCIB Share Purchases  

For the third quarter, the Company repurchased 3.7 million common shares for $340 million under the Company’s normal course issuer bid (NCIB) program. Share repurchases are made subject to market conditions, the Company’s ability to effect the purchases on a prudent basis, applicable laws and the availability of other strategic opportunities.

The current NCIB program commenced on January 6, 2026 (as amended in July 2026) and permits Great West to purchase for cancellation up to 40 million common shares.

Analysts’ Estimates  

The average estimate of base earnings per share and net earnings per share for the quarter among the analysts who follow the Company was $1.42 and $1.36, respectively^[8].

Q3 2026 Conference Call  

Great West’s third quarter conference call and audio webcast will be held on Thursday, November 5, 2026 at 9:30 a.m. ET.

The live webcast of the call will be available at 3rd Quarter 2026 – Conference Call and Webcast or by calling 1-647-932-3411 or 1-800-715-9871 (toll-free in North America). To join the conference call without operator assistance, please register and provide your phone number here. A replay of the call will be available on November 5, 2026 until November 12, 2026. To listen to the replay, call 1-647-362-9199 or 1-800-770-2030 (toll-free in North America), entry code 5181198.

Selected consolidated financial information is attached.

ABOUT GREAT WEST

Great West is a financial services holding company focused on building stronger, more financially secure futures. We operate in the United States, Canada and Europe under the brands Empower, Canada Life and Irish Life. Together we provide wealth, retirement, group benefits and insurance and risk solutions to our approximately 40 million customer relationships. As of September 30, 2026, Great West’s total client assets were $3.9 trillion.

Great West trades on the Toronto Stock Exchange (TSX) under the ticker symbol GWO and is a member of the Power Corporation group of companies. To learn more, visit greatwestlifeco.com.

Basis of presentation

The condensed consolidated interim financial statements for the period ended September 30, 2026 of Great West, have been prepared in accordance with International Financial Reporting Standards (IFRS) Accounting Standards unless otherwise noted and are the basis for the figures presented in this release, unless otherwise noted.

Cautionary note regarding Forward-Looking Information

From time to time, Great West makes written and/or oral forward-looking statements within the meaning of applicable securities laws, including in this release. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “achieve”, “ambition”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “initiatives”, “intend”, “may”, “objective”, “opportunity”, “plan”, “potential”, “project”, “target”, “will” and other similar expressions or negative versions of those words. Forward-looking information includes, without limitation, statements about the Company and its operations, business (including business mix), financial condition, expected financial performance (including revenues, earnings or growth rates and medium-term financial objectives), strategies and prospects, expected costs and benefits of acquisitions and divestitures (including timing of integration activities and timing and extent of revenue and expense synergies), the timing and extent of expected transformation charges and related expected run-rate base earnings savings, expected expenditures or investments (including but not limited to investment in technology infrastructure and digital capabilities and solutions and investments in strategic partnerships), value creation and realization and growth opportunities, product and service innovation, expected dividend levels, expected cost reductions and savings, expected capital management activities and use of capital, market position, estimates of risk sensitivities affecting capital adequacy ratios, estimates of financial risk sensitivities (including as a result of current market conditions), expected credit experience, anticipated global economic conditions, potential impacts of catastrophe events, potential impacts of geopolitical events and conflicts and the impact of regulatory developments (including changes to laws and government policies) on the Company’s business strategy, growth objectives and capital.

Forward-looking statements are based on expectations, forecasts, estimates, predictions, projections and conclusions about future events that were current at the time of the statements and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally, including the insurance, wealth and retirement solutions industries. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance that they will prove to be correct.

In all cases, whether or not actual results differ from forward-looking information may depend on numerous factors, developments and assumptions, including, without limitation, the ability to integrate and leverage acquisitions and achieve anticipated benefits and synergies, the achievement of expense synergies and client retention targets from the acquisition of the Milliman’s retirement plan and benefits administration business, the Company’s ability to execute strategic plans and adapt or recalibrate these plans as needed, the Company’s reputation, business competition, assumptions around sales, pricing, fee rates, customer behaviour (including contributions, redemptions, withdrawals and lapse rates), mortality and morbidity experience, expense levels, reinsurance arrangements, global equity and capital markets (including continued access to equity and debt markets and credit instruments on economically feasible terms), geopolitical tensions and related economic impacts, interest and foreign exchange rates, inflation levels, liquidity requirements, investment values and asset breakdowns, hedging activities, financial condition of industry sectors and individual issuers that comprise part of the Company’s investment portfolio, credit ratings, taxes, impairments of goodwill and other intangible assets, technological changes, including use of emerging technologies, such as artificial intelligence (AI), in our business, breaches or failure of information systems and security (including cyber attacks), assumptions around third-party suppliers, changes in local and international laws and regulations, changes in accounting policies and the effect of applying future accounting policy changes, changes in actuarial standards, unexpected judicial or regulatory proceedings, catastrophic events, continuity and availability of personnel and third-party service providers, unplanned changes to the Company’s facilities, customer and employee relations, levels of administrative and operational efficiencies, and other general economic, political and market factors in North America and internationally.

The above list is not exhaustive, and there may be other factors listed in the Company’s filings with securities regulators, including those set out in the “Risk Management” and “Summary of Critical Accounting Estimates” sections of the Company’s 2025 Annual MD&A and in the Company’s annual information form dated February 11, 2026 under “Risk Factors”. These, along with other filings, are available for review at www.sedarplus.ca. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to place undue reliance on forward-looking information.

Other than as specifically required by applicable law, the Company does not intend to update any forward-looking information whether as a result of new information, future events or otherwise.

Cautionary note regarding Non-GAAP Financial Measures and Ratios

This release contains some non-Generally Accepted Accounting Principles (GAAP) financial measures and non-GAAP ratios as defined in National Instrument 52-112 “Non-GAAP and Other Financial Measures Disclosure”. Terms by which non-GAAP financial measures are identified include, but are not limited to, “base earnings (loss)”, “base earnings (loss) (US$)”, “base earnings (loss) – pre-tax”, “base earnings: insurance service result”, “base earnings: net investment result”, “assets under management or advisement”, “assets under administration”, “client assets”, “non-par base operating and administration expenses”, and “run-rate insurance results”. Terms by which non-GAAP ratios are identified include, but are not limited to, “base earnings per common share (EPS)”, “base return on equity (ROE)”, “base dividend payout ratio”, “base capital generation”, “efficiency ratio”, “effective income tax rate – base earnings – common shareholders” and “pre-tax base operating margin”. Non-GAAP financial measures and ratios are used to provide management and investors with additional measures of performance to help assess results where no comparable GAAP (IFRS Accounting Standards) measure exists. However, non-GAAP financial measures and ratios do not have standard meanings prescribed by GAAP (IFRS Accounting Standards) and are not directly comparable to similar measures used by other companies. Refer to the “Non-GAAP Financial Measures and Ratios” section in this release for the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP as well as additional details on each measure and ratio.

FINANCIAL HIGHLIGHTS (unaudited)

 

BASE AND NET EARNINGS

For a further description of base earnings, refer to the “Non-GAAP Financial Measures and Ratios” section of this document and the Company’s third quarter of 2026 Interim Management’s Discussion and Analysis.

NON-GAAP FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures

The Company uses several non-GAAP financial measures to measure overall performance of the Company and to assess each of its business units. A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance with generally accepted accounting principles (GAAP) used for the Company’s consolidated financial statements. The consolidated financial statements of the Company have been prepared in compliance with IFRS Accounting Standards as issued by the IASB. Non-GAAP financial measures do not have a standardized meaning under GAAP and may not be comparable to similar financial measures presented by other issuers. Investors may find these financial measures useful in understanding how management views the underlying business performance of the Company.

Base earnings (loss)

Base earnings (loss) reflect management’s view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to net earnings.

Base earnings (loss) exclude the following items from net earnings:

• Market-related impacts, where actual market returns in the current period are different than longer-term expected returns;
• Assumption changes and management actions that impact the measurement of assets and liabilities;
• Business transformation and other impacts, when removed, assist in explaining the Company’s underlying business performance, including acquisition and divestiture costs and restructuring and integration costs;
• Material legal settlements, material impairment charges related to goodwill and intangible assets, impacts of income tax rate changes on the remeasurement of deferred tax assets and liabilities and other tax impairments, net gains, losses or costs related to the disposition or acquisition of a business; net earnings (loss) from discontinued operations;
• The direct equity and interest rate impacts on the measurement of surplus assets and liabilities;
• Amortization of acquisition related finite life intangible assets; and
• Other items that, when removed, assist in explaining the Company’s underlying business performance.

 

 

 

Assets under administration (AUA), assets under management or advisement (AUMA), assets under administration only (AUAO) and client assets

Assets under administration, assets under management or advisement and client assets are non-GAAP financial measures. These measures provide an indication of the size and volume of the Company’s overall business. Administrative services are an important aspect of the overall business of the Company and should be considered when comparing volumes, size and trends.

Total assets under administration includes assets under management or advisement (AUMA), assets under administration only (AUAO), the total of which is total client assets, and other balance sheet assets.

Client assets represent the total client assets under management or advisement plus assets under administration only for the Company’s Retirement and Wealth lines of business.

Client assets are classified as AUMA where the Company earns a fee for one or more of the following services: investment management services for proprietary funds or institutional assets, discretionary portfolio management on behalf of clients, and/or the provision of financial advice. AUMA relate to the Company’s Retirement and Wealth lines of business only.

Refer to the “Glossary” section of the Company’s third quarter of 2026 Interim MD&A for the definition of AUAO.

Other balance sheet assets include insurance contract assets, reinsurance contract assets, goodwill and intangible assets, other assets, as well as the portion of invested assets and investments on account of segregated fund policyholders not included within total client assets.

Pre-tax operating income

This measure represents base earnings before financing costs, tax, depreciation and amortization for Lifeco’s Retirement and Wealth lines of business. It assists in explaining our results from period to period and measures profitability. There is no directly comparable measure under IFRS so it is not possible to provide a reconciliation to the most directly comparable IFRS metric.

NON-GAAP RATIOS

A non-GAAP ratio is a financial measure in the form of a ratio, fraction, percentage or similar representation that is not disclosed in the financial statements of the Company and has a non-GAAP financial measure as one or more of its components. These financial measures do not have a standardized definition under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other issuers.

The non-GAAP ratios disclosed by the Company each use base earnings (loss) as the non-GAAP component. Base earnings (loss) reflect management’s view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to net earnings.

• Base dividend payout ratio – Dividends paid to common shareholders are divided by base earnings (loss).
• Base earnings per share – Base earnings (loss) for the period is divided by the number of average common shares outstanding for the period.
• Base return on equity – Base earnings (loss) for the trailing four quarters are divided by the average common shareholders’ equity over the trailing four quarters. This measure provides an indicator of business unit profitability.
• Efficiency ratio – Calculated on a trailing four quarter basis as pre-tax non-par base operating and administrative expenses divided by the sum of pre-tax base earnings and pre-tax non-par base operating and administrative expenses.
• Pre-tax base operating margin – Pre-tax operating earnings expressed as a percentage of fee and spread income.

SOURCE Great-West Lifeco Inc.